Demand schedule discusses
a tabular representation of the association between price and quantity
demanded. It determines the quantity of a product demanded by an individual or
a cluster of individuals at specified price and time.
Demand schedule can further have categorized into two types;
These two types of demand schedules are clarified bellows:
1. Individual Demand Schedule:
Denotes to a tabular representation of quantity of products demanded by an individual at various prices and time.
Below table displays the individual demand schedule of product a purchased (bought) by Mr. Ahmad Lone:
Characteristics of individual demand schedule are as follows:
- Determines the effect of changing price on the buying behavior of an individual rather than change in the demand for product.
- Expresses the difference in demand with the difference in the product’s price.
- It tells us that at higher prices, the quantity demanded decreases and vice versa.
2. Market Demand Schedule:
Displays a tabular representation of quantity demanded in aggregate (collective) by individuals at various prices and time. Hence, it determines the demand of a product in the market at various prices. The market demand schedule can be derived by aggregating the individual demand schedules.
Below table displays the market demand schedule organized through the individual demand schedule of three customers (individuals):
Market demand schedule also validates an inverse relation between the quantity demanded and product price.
February 19, 2017